Banking Awareness - Types Of Bank Accounts
Which statement correctly compares demand deposits and time deposits?
Which statement correctly compares demand deposits and time deposits?
medium Q7 of 15
Step-by-Step Solution
Step 1: Compare liquidity.
Demand deposits allow instant withdrawal.Step 2: Compare returns.
Time deposits pay higher interest.Final Answer:
Demand deposits offer liquidity, time deposits offer higher returns → Option DQuick Check:
Liquidity vs Return trade-off defines the difference ✅
Quick Trick: Liquidity vs return is the key contrast.
Common Mistakes:
MISTAKES- Assuming one deposit type dominates both features.
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